Drivers advised to buy this type of car used to avoid heavy depreciation
A motoring expert has advised drivers looking to avoid losing out on thousands to buy a certain kind of car used do it its high depreciation rate.
Drivers looking to buy a new model that will still be valuable in many years to come have been urged to consider one type of car over any other.
While the used car market is currently booming, many pre-owned models are selling for less than in previous years, meaning more are considering how much a vehicle depreciates before they buy it.
Paul Barker, editor of the motoring publication Auto Express, says that performance models typically hold onto their value much better than more practical alternatives.
He explained: "Our latest analysis shows that sports cars are currently top of the pile for retained value. It’s a trend we feel is partly driven by a diminishing number of such models available to buy new.
"This, together with the high prices of sports cars, is pushing up prices for used cars that hit the market a few years down the line, meaning sellers could get a better price."
While not all motorists could get by with the limited practicality and high running costs of a sports car, Auto Express noted that many types of family car also rank well for overall depreciation.
Large SUVs are the best depreciating family cars, with the company highlighting that the average model still has around 52 percent of its retail value after 36 months and 36,000 miles on the clock.
Surprisingly, superminis, some of the cheapest cars on the market, also ranked well, still having more than half of their retail price after three years.
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Nevertheless, not all types of cars hold onto their value, with Paul recommending that drivers looking to save money buy a luxury model second hand to avoid taking a hit.
He continued: "When it comes to luxury cars, the worst-performing category for depreciation, it’s a case of the big luxury saloon falling firmly out of favour with private buyers.
"While the luxury SUV market has grown, and we see these large SUVs with premium badges holding onto their value strongly, models like the Audi A8 and BMW 7 Series are less sought-after. This results in a lower return when owners go to sell."
Top five car types that hold their value best (percentage of new price after 36 months):
- Sports cars - 52.38 percent
- Large SUVs - 52.05 percent
- Superminis - 50.23 percent
- Premium Hatchbacks - 50.04 percent
- MPVs - 49.16 percent
